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1 Companion Guide Renewal of Certificate / Maintenance of Registration Independent Representative The Autorité des marchés financiers (the AMF or the Authority ) has prepared this companion guide to help you answer the new questions of the Renewal of Certificate - Maintenance of Registration form. For more information, please feel free to contact our Information Centre at General instructions To help you disclose your business relationships, consult the Managing Business Relationships companion guide. You will need to fill out the Renewal of Certificate / Maintenance of Registration form first before completing the Manage Business Relationships form. If you use E-Services, you can print a copy of the form before submitting it.

2 DECLARATION RELATED TO PROFESSIONAL PRACTICE Q1- Do you use a business name ( doing business as )? A business name is a corporate name. Your business name must be registered with the Registraire des entreprises du Québec (Québec Enterprise Registrar) if it does not contain your first and last names. Q2- Do you receive or collect funds on behalf of others (e.g., for an insurer or a client)? Funds collected on behalf of others are those that you receive or cash on behalf of others in the course of your activities, e.g., for the payment of a premium to an insurer, a repayment to an insured or the payment of a claim. This does not relate to, for example, a cheque issued in the name of an insurer that is given to you before being sent to the insurer. You must hold a separate account at a financial institution in which all funds received or collected on behalf of others must be deposited immediately. Q3- Do you have one or more separate or in-trust accounts? A separate account means a separate account opened at a financial institution (authorized to receive deposits in Canada) and in which you must deposit all amounts that you receive or collect on behalf of others. This account is separate from the account(s) used for your own regular business transactions so that the funds held on behalf of others are not commingled with your own business assets. You must disclose your separate account(s) to the AMF. Q4- Do you hold one or more loans with one or more insurers? This question relates to loans made by an insurer. Q5- Do you hold one or more loans with one or more registrants? This question relates to loans made by a firm, independent partnership or independent representative. Page - 1

3 Q6- Do you have commission sharing agreements with one or more businesses registered 1 with the AMF? Sharing of commissions takes place when a registrant (firm, independent partnership or independent representative) splits or divides remuneration and gives part of it to another person authorized under the Act respecting the distribution of financial products and services (the Act ). There is a sharing of commissions when a product is sold or a service provided by only one registrant, who assumes responsibility toward the client, and another registrant receives part of the remuneration for the transaction and agrees to share it. Moreover, when two registrants sell a product or provide a service jointly to a client, they are both responsible for the services they provided to this client. Consequently, both are entitled to receive a commission. In this case, there is no sharing of a commission. You must disclose agreements under which you share commissions, but also under which you receive a share of commissions. Agreements must be disclosed, but not their terms and conditions. Q7- Do you have agreements with client referral agents or did you pay money to such agents during the year ended last December 31? A client referral is defined as the act, for a natural person, of referring a client to a representative who holds a certificate or a person registered under the Act. Q8- Do you have agreements with one or more insurers for server and/or Internet site hosting, administration services, equipment supply, premises leasing or staff loans? This question relates to agreements reached with an insurer whereby the insurer operates services at its own expense, for your benefit. This type of agreement allows you to derive a benefit free of charge. This question does not relate to, for example, services where you pay monthly administration fees. Q9- Do you have agreements with one or more registrants for server and/or Internet site hosting, administration services, equipment supply, premises leasing or staff loans? This question relates only to agreements entered into with a firm, independent partnership or independent representative. This type of agreement allows you to derive a benefit free of charge. This question does not relate to, for example, services where you pay monthly administrative fees. 1 Registered business: Any business registered under the Act respecting the distribution of financial products and services or the Securities Act (in the mutual fund or scholarship plan category). Page - 2

4 Q10- Do you have a business continuity plan? A business continuity plan is a written document that sets out the actions required to ensure the continuity and resumption of your activities following an incident (e.g., failure of your computer systems, fire or flooding in your premises). In some cases, the plan may also provide for measures to take in the event you have a disability or become incapacitated. Q11- Do you charge your clients policy fees, trading fees, professional fees, compensation or administrative fees (any fees other than premiums)? This question relates to fees that you charge consumers for your services, other than those determined by the insurer, including file opening fees. Compensation is a remuneration or payment. Q12- Do you have clients outside Québec? This question relates to your current clients who no longer have a home address in Québec and who currently reside in a jurisdiction where you are not authorized to pursue activities. DECLARATION PERTAINING TO DAMAGE INSURANCE (if applicable) Q1- Please fill out the following table by indicating the business volume placed with insurers for which you offered products during the year ended last December 31. Provide information only for insurers representing at least 10% of your business volume by type of product. Please answer to the best of your ability. The list of insurers is available in the public register on our website at Q2- In general, from how many insurers do you request quotes before offering product(s) to your clients? Please indicate the average number of insurers from which you request quotes before offering product(s) to your clients. Page - 3

5 Q3- In general, from how many insurers do you select products to present to your clients? Please enter the average number of insurers whose products you present to your clients. Q4- Do you use the services of wholesalers? Damage insurance wholesalers are businesses that pursue brokerage and underwriting activities concurrently or separately. Q5- Do you deal with the following businesses? This question is intended to specify the type of unregistered businesses with which you have partnerships or business relationships that are directly related to your insurance activities, excluding any administrative or business management element, and that have not been disclosed in other parts of the form. DECLARATION PERTAINING TO INSURANCE OF PERSONS (if applicable) Q1- Do you have direct distribution agreements with insurers? The AMF wants to know if you deal directly with an insurer to offer insurance products, without going through a general agent. Q2- Do you have distribution agreements with general agents? The AMF wants to know if you entered into an agreement to use the services of a general agent. General agent means a registrant to which an insurer has delegated certain tasks and which acts as an intermediary between that insurer and other registrants. This includes general agents, affiliated general agents and any other industry title that meets the above definition. Q3- Do you have distribution agreements with other registrants? The AMF wants to know if you have entered into a distribution agreement with another registrant that does not act as a general agent with you. Page - 4

6 Q4- Indicate volume of premiums sold for the year ended last December 31. Please answer to the best of your ability. Living benefits include critical illness, disability and accident and sickness products. Death benefits refer to life insurance products, while annuity products relate to segregated funds, in particular. For annuities, premiums correspond to amounts invested. Q5- In connection with your insurance activities, do you maintain business relationships with businesses that are not registered with the AMF? This question is intended to specify the type of unregistered businesses with which you have partnerships or business relationships that are directly related to your insurance activities, excluding any administrative or business management element, and that have not been disclosed in other parts of the form. The question relates to partnerships with, among others, premium comparison websites or telemarketing and call centres. This means the AMF does not want to be informed of your business relationships with a home insurer, telecommunications, power or office equipment providers, lessor, property maintenance company, etc. DECLARATION PERTAINING TO GROUP INSURANCE OF PERSONS (if applicable) Q1- Do you have direct distribution agreements with insurers? The AMF wants to know if you deal directly with an insurer to offer insurance products, without going through a general agent. Q2- Do you have distribution agreements with general agents? The AMF wants to know if you have entered into an agreement to use the services of a general agent. General agent means a registrant to which an insurer has delegated certain tasks and which acts as an intermediary between that insurer and other registrants. This includes general agents, affiliated general agents and any other industry title that meets the above definition. Q3- Do you have distribution agreements with other registrants? The AMF wants to know if you entered into a distribution agreement with another registrant that does not act as a general agent with you. Page - 5

7 Q4- Indicate volume of premiums sold for the year ended last December 31. Please answer to the best of your ability. For group annuities, premiums correspond to amounts invested. Q5- In connection with your insurance or annuity activities, do you maintain business relationships with businesses that are not registered with the AMF? This question is intended to specify the type of unregistered businesses with which you have partnerships or business relationships that are directly related to your insurance or annuity activities, excluding any administrative or business management element, and that have not been disclosed in other parts of the form. The question relates to partnerships with, among others, premium comparison websites or telemarketing and call centres. This means the AMF does not want to be informed of your business relationships with a home insurer, telecommunications, power or office equipment providers, lessor, property maintenance company, etc. Page - 6